Buy To Let Mortgage

If you intend to purchase a property to rent out then you will require a "buy to let" mortgage. If you intend to raise capital from a property that is to be rented, in order to purchase another property, you will require a "let to buy" mortgage.

Either way, the borrowing is secured against the property to be let out and the amount you can borrow is normally dictated by :
The deposit that you are putting down in the case of a purchase,
or the equity in the property in the case of a re-mortgage.
Your borrowing potential is very strongly linked to the amount of rental income to be received however earned income can be used to top it up.

In addition to rental income, there are a number of different factors that can influence a lender's decision to lend. These include, but are not limited to:

  • The type of property being purchased - Ex local authority, studio/high rise flats are some examples of property that lenders may find unacceptable
  • The type of proposed tenant - Some lenders do not accept students, some won't accept DSS
  • The type of tenancy agreement - Most lenders insist on a minimum six months assured short hold tenancy
  • Whether there are any licensing requirements - Certain properties are subject to mandatory HMO* licensing
  • The borrowers personal financial circumstances - Some lenders require a minimum level of income
  • Employment status - It may be possible to purchase a buy to let as a 'house person'
  • Age - Some lenders have minimum and maximum borrower ages
  • Mortgage history - It may not be possible to borrow from some lenders if you do not have a current residential mortgage

All lenders offering Buy To Let mortgages differ in their approach and the buy to let market is becoming ever increasingly complicated due to the rapidly changing economy.

At Hurleys we have access to the whole of the market and will advise you if this is the most suitable product for you, which lender to choose and the most efficient way to proceed.

Contact us now or click on the enquiry form and we guarantee one of our fully qualified consultants will contact you the same working day.

Most Buy to Let mortgages are not regulated by the Financial Services Authority